The payment of an additional US$65.8 million dollars to creditors in November satisfied a total US$105.34 million in principal and interest payments scheduled for payment by Garuda in 2004.

Garuda's outstanding debt now stands at US$827.9 million.

Garuda's continuing ability to meet its debt obligations has been greeted optimistically in banking circles who point to the National Carriers success at streamlining and cost efficiency programs introduced over the past few years.

First Book Loss For Garuda Since 1998

Meanwhile, Garuda is widely expected to record its first operating loss since 1998 when final figures are released for 2004.

Despite higher revenues than 2003, escalating fuels costs and lower ticket prices necessitated by intense inter-regional competion will likely result in a loss of billions of Rupiahs for the Airline in 2004.

Hoping to improve their financial reports in 2005, Garuda is budgeting a 15% growth in sales revenues and a 10% growth in passenger loads in 2005.